Bitcoin isn't for Jeffrey Gundlach, but the billionaire investor said there may soon be a buying opportunity below $23,000 for those who can stomach the cryptocurrency's volatility. The DoubleLine CEO said Thursday on CNBC's "Halftime Report" that he was bullish on bitcoin in early 2020, when it traded as low as $5,000 and jumped to about $23,000 by the end of the year. "Then it went insanely high" to above $60,000 this year, Gundlach said. "Right now the chart on bitcoin looks pretty scary. It's dropped a lot from $60,000 down to around $31,500 and it looks like a massive head-and-shoulders top." "I'm not a big believer in head-and-shoulders tops but this one looks pretty convincing. Turning neutral at $23,000 was obviously too early, but I've got a feeling you're going to be able to buy it below $23,000 again," he added. Technical analysts have pointed to the head-and-shoulders trading pattern — where the price rises to a high and then declines to the price that was the base of the previous upside move — that has been forming for the past few weeks as evidence that bitcoin could go even lower than $23,000, with some estimating $20,000. Bitcoin traded around $31,200 on Thursday, according to Coin Metrics, as it tested a key support level — or a lower price at which investors are still willing to purchase an asset. Analysts say bitcoin is a good long-term story with a bad short-term chart , but Gundlach maintained he wouldn't own it. "I still think bitcoin is highly speculative and highly volatile," he said, adding "It's only a trading view, I've never been long bitcoin personally, I've never been short, it's just not for me. I don't have that kind of risk tolerance in my DNA where I have to get worried to pull up the quote every day to see if it's down 40%." "I would not own bitcoin presently, I think there's enough of an opportunity to buy at a cheaper level, and that is the case I think of many of the speculative assets," he added.
Bitcoin isn't for Jeffrey Gundlach, but the billionaire investor said there may soon be a buying opportunity below $23,000 for those who can stomach the cryptocurrency's volatility.